Journal Article

Does the yield curve signal recession?


Abstract: Experience has taught economic forecasters to expect a recession when the yield on short-term Treasury securities rises above the yield on longer-term securities?a situation known as a yield-curve inversion. But some economists suspect the yield curve might not be as reliable a predictor of output growth as it used to be.

Keywords: Interest rates; Recessions; Economic forecasting;

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Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2006

Issue: Apr

Order Number: 2